In re Aparicio

INTRODUCTION

Nearly ten years after the dissolution of her 18 year marriage to Ethan Aparicio, Olivia (Aparicio) Reyes applied to the Superior Court of California for the County of Tulare ("Superior Court" or "State Court") thereby renewing the dissolution judgment which, in part, incorporated a marital settlement agreement ("MSA"). Under the MSA, Ethan was to pay Olivia for support, equalization, home repair, and expenses for a business they both owned and operated during marriage.

Ethan disputes his liability under the judgment claiming, among other things, the MSA is partially invalid and that he is entitled to credits against the judgment for his support payments, "in kind" payments for their child, and an offset because Olivia sold the business. Ethan also concedes that he owes Olivia for specific items.

Before the State Court ruled on his challenges to the judgment, Ethan filed this Chapter 13 bankruptcy case. The Chapter 13 Trustee moved to dismiss the case because the amount Olivia claims is due under the judgment exceeds the eligibility limits for unsecured debts under 11 U.S.C. § 109 (e). 1 Ethan contends Olivia's *671 claim is unliquidated and largely should not be…